Russia’s Middle East policy after the Arab revolutions. OSW Commentary No. 59, 2011-07-26

Russia’s policy towards the Middle East is instrumental. Its activity in the region has been growing since the middle of the last decade, and its aim is to help Moscow achieve its objectives in other areas, particularly in its policies towards the US and Europe, as well as its energy policy. The establishment of these political influences constitutes a bargaining chip for Russia in its relations with the US. Russia’s participation in resolving conflicts is aimed at building up its image as a supra-regional power. Russia’s Middle East policy is a key element in its contacts with the Muslim world. At the same time, Russia’s policy in the region remains cautious – despite its return to the region, Russia has not decided to ‘play’ for the Middle East, and its position and role in the region remain limited. The balance of power in the Middle East has been shifting in the aftermath of the Arab revolutions. However, it does not seem that they have opened up larger opportunities for Russian policy in the region. The Russian elite has been divided in its assessment of the consequences of these events. One part of it has displayed scepticism, treating the revolutions rather as a threat than a chance to strengthen their own position. The revolutions were not seen as democratisation processes, but rather as a destabilisation of the region and as posing an increased danger from radical Islam. For the other part of the elite, the revolutions were the natural consequence of the social changes occurring in the region. This internal dispute made it difficult for Russia to present a cohesive approach to the Arab revolutions, and its stance was reactive. The defensive position which Moscow adopted showed that Russia did not have the potential to mould the political situation, either in the region as a whole or its individual countries; neither did it display any willingness to do so. What Moscow is doing is positioning itself in such a way so as not to spoil relations with any other actor in the region, and to be able to exploit any possible emerging opportunities in case of further-reaching changes.

Patterns and Determinants of Off-Farm Migration: Transfer frictions and persistency of relative income gaps. Factor Markets Working Papers No. 36, February 2013

The inter-sectoral migration of agricultural labour is a complex but fundamental process of economic development largely affected by the growth of agricultural productivity and the evolution of the agricultural relative income gap. Theory and some recent anecdotal evidence suggest that as an effect of large fixed and sunk costs of out-farm migration, the productivity gap between the agricultural and non-agricultural sectors should behave non-monotonically or following a U-shaped evolution during economic development. Whether or not this relationship holds true across a sample of 38 developing and developed countries and across more than 200 EU regions was empirically tested. Results strongly confirm this relationship, which also emphasises the role played by national agricultural policy.

What can Arab countries learn from the post-communist transition? MEDPRO Commentary, 31 May 2012

More than a year has passed since the start of the political uprising against the authoritarian regimes in the Arab world. But, as demonstrated by the ongoing unrest in Syria, the process is far from over. Meanwhile, nations that have already rid themselves of their authoritarian rulers (Tunisia, Egypt, Libya and Yemen), must decide where to go now and how to manage their political and economic transitions. To a lesser extent, a similar challenge is being faced by those constitutional monarchies (such as Morocco or Jordan) that accelerated reforms in order to avoid political destabilisation.   Many politicians and experts, especially those from Central and Eastern Europe, suggest that their Arab colleagues should learn from the post‐communist transition of the early 1990s. However, while learning from others’ experience is always a useful exercise, the geopolitical and socio‐economic context of the Arab revolution appears to be different, in many respects, from that of former Soviet bloc countries more than twenty years ago.

Female Labour Force Participation and Economic Development in Southern Mediterranean Countries: What scenarios for 2030? MEDPRO Technical Report No. 19/December 2012

This paper investigates the relationship between female labour force participation rates and economic growth in southern Mediterranean countries. A two-step methodology involving econometric estimations and the use of a general equilibrium model was used for this purpose. The econometric estimations suggest that there is a U-shaped relationship between economic growth and female labour force participation rates and they indicate the presence of region-specific barriers impeding women's entry into the labour force in southern Mediterranean countries. The econometric results were fed into a general equilibrium model, the GEM-E3-MEDPRO, which was used to simulate two alternative assumptions on developments in female labour participation rates in the region up to 2030. The first of these simulated changes in female labour force participation rates arising from income level trends projected for the period 2015–2030 in southern Mediterranean countries. The second assumed the lowering of region-specific barriers which deter female labour force participation. The results of these simulations suggest that lower female labour force participation rates may lead to marginally lower economic growth in the region, while the removal of region-specific barriers to female labour force participation may encourage economic growth. This has important policy implications, suggesting that policies intended to remove such barriers could help to promote the growth of the region's economies.

Inequality in the Southern Mediterranean: A survey of selected countries. MEDPRO Technical Report No. 23/December 2012

This paper addresses the issues of current levels of inequality: their trends, determinants and future scenarios, demonstrating that welfare levels are measured by per capita consumption. Location, educational attainment and employment status have been identified as the key factors affecting levels of welfare and its distribution. A benefit incidence analysis was performed to investigate benefits of different deciles of per capita expenditure from education and health services. The inequality patterns in countries under investigation present significant variations; countries such as Turkey, Morocco and Tunisia show relatively high inequality while others, such as Egypt or Syria, show moderate to low inequality. Inequality in human development was addressed using the inequality-adjusted human development index (IHDI), introduced by Global HDR 2010. The average loss in the HDI due to inequality in all Arab countries under investigation is about 20%. Two reference scenarios (optimistic and pessimistic) were used to project future paths up to 2020 and 2030. The impact of positive growth is increasing inequality and a shrinking middle class. Results show that the rich benefit most from this growth path. The opposite trend is observed for the pessimistic scenario.

Comparing fiscal multipliers across models and countries in Europe. National Bank of Belgium Working Paper No. 278, March 2015

This paper employs fifteen dynamic macroeconomic models maintained within the European System of Central Banks to assess the size of fiscal multipliers in European countries. Using a set of common simulations, we consider transitory and permanent shocks to government expenditures and different taxes. We investigate how the baseline multipliers change when monetary policy is transitorily constrained by the zero nominal interest rate bound, certain crisis-related structural features of the economy such as the share of liquidity-constrained households change, and the endogenous fiscal rule that ensures fiscal sustainability in the long run is specified in terms of labour income taxes instead of lump-sum taxes.

Report on democracy assistance from the European Union to the Middle East and North Africa. EUSpring Report, 18 May 2016

Since the Arab uprisings of 2011, European Union (EU) assistance has nominally targeted more resources to supporting democracy movements in the Middle East and North Africa (MENA) region. The EU has better equipped itself institutionally, financially and conceptually, by strengthening its bottom up grassroots approach to democracy support; resources earmarked for supporting civil society have been increased, the budget for the European Instrument for Democracy and Human Rights (EIDHR) has been beefed up, and the strengthened EU Delegations have be come more empowered to reach out to groups at the local grass roots level behind democracy activities; The European Endowment for Democracy (EED) was created with the mandate to support individuals and organizations in neighbouring countries that work for democracy. Whether this translates into a more effective strategy for democracy support, however, remains to be seen. In this report, Rosa Balfour, Francesca Fabbri and Richard Youngs present a detailed overview of the support given to civil society in the MENA region by the EU, with a special focus on the various financial instruments used.